Target is the latest retailer to jump on the "buy now, pay later" bandwagon. Ahead of the busy holiday season, Target is offering shoppers additional ways to pay for their purchases with new installment plans from Affirm and Sezzle, the retailer said Wednesday. Installment plans, which are beginning to replace traditional layaway plans, are increasingly popular with retailers. Amazon and Walmart have adopted them, as have Macy’s and Bed Bath & Beyond. Newer entrants include Paypal, which bought Paidy, and Square, which bought Afterpay.
AvidXchange Holdings Inc is looking to raise up to $506 million in a U.S. initial public offering (IPO), according to a regulatory filing on Monday, that could value the business payments firm at about $4.4 billion. The company, which is backed by billionaire Peter Thiel, was valued at $2 billion in a funding round in April last year. Reuters reported in March that AvidXchange had hired investment banks to prepare for an IPO. Financial technology firms that facilitate payments for businesses have been highly successful over the past year, as the COVID-19 pandemic accelerated digital transformation.
Startups Veem and Melio Payments, based on opposite U.S. coasts, are both angling for a share of the multi-trillion-dollar business-to-business payments market, targeting small and mid-sized enterprises. They’re not alone. Dozens of fintechs are wooing businesses that are suddenly trying to digitize payment processes with new software solutions. The market opportunity is huge and there are plenty of niches to be had, industry executives say.
According to a 2019 report by the Federal Reserve, 22% of American adults, or 63 million, are either “unbanked” or “underbanked,” meaning they don’t have easy access to a financial institution to do things like cash checks or save money. Separately, a 2020 report by the U.S. Government Accountability Office found that the U.S. Postal Service had lost $69 billion over 11 years, declaring that its “mission and financial solvency are increasingly in peril.” A new initiative from the USPS begins to address the confluence of those two issues.
One of the first moves to bring a payment system not controlled by Apple Inc. to Apple’s App Store emerged Thursday and follows a landmark federal-court ruling last month. Paddle Ltd., a London-based payments provider, said it will begin offering the alternative Dec. 7, in line with the terms of the ruling, and will charge App Store sellers commissions well below the transaction fees levied by Apple. Paddle’s move to attract iOS developers on the App Store follows a ruling Sept. 10 by a federal judge for the Northern District of California. Among other matters, her decision requires Apple to open the App Store to payment options beyond the company’s own system.
There’s a new name atop our Most Powerful Women in Banking rankings. She’s been a mainstay on this list for years, but now commands the No. 1 spot after becoming the first female chief executive of a U.S.-based global bank. The rest of the group also should be familiar to American Banker readers, with all having been among the 2020 Most Powerful Women in Banking or among the 2020 Most Powerful Women to Watch.
The Google graveyard is getting more crowded. After announcing the Plex mobile-first bank accounts in November last year with Citibank and a few other financial institutions, Google is pulling back from the product. According to the Wall Street Journal, the company is "abandoning plans to pitch bank accounts to its users." A Google spokesperson told Engadget that it's "updating our approach to focus primarily on delivering digital enablement for banks and other financial services providers rather than us serving as the provider of these services."
Monzo has been forced to abandon its bid to acquire a US banking licence following a fruitless two-year discourse with regulatory authorities. In a statement, the bank says: “Following recent engagement with the OCC (Office of the Comptroller of the Currency), we’ve decided to withdraw our banking license application for our US start-up. While this isn’t the outcome we initially set out to achieve, this allows us to build and scale our early-stage product offer in the US through existing partners and invest further in the UK.”
Simon, the largest shopping center owner and operator in the U.S., and Klarna, which offers payment plans, social shopping and finance to consumers, today announced a strategic national multi-year alliance that will provide customers in Simon shopping destinations with access to Klarna’s unique in-store payment solutions. The collaboration will harness the power of Simon’s vast in-store shopper base with Klarna’s millions of monthly active users. Klarna and Simon are also working closely on additional strategic initiatives, which will be announced and rolled out in the future.
May require account to read. Pix, a system which allows fast money transfers over smartphones, has become ubiquitous in the 11 months since it was launched by Brazil’s central bank. All that’s needed to send cash to someone is a simple key they’ve set up, such as an email address or phone number. Similar to the privately owned Zelle in the U.S., Pix works through multiple apps from banks and other digital wallet services. It’s already been used at least once by 110 million Brazilians and about $89 billion has moved through the network. Brazil now registers more instant transfers than the U.S.
Traditional cross-border payments giant MoneyGram is working with the Stellar blockchain network to create instant money transfers using Circle’s USDC stablecoin, the companies announced Wednesday. The firms will start with a pilot in the fourth quarter of this year. Early 2022 will see a gradual rollout of the ledger-based stablecoin bridge between crypto and local currencies with a view toward connecting MoneyGram’s 150 million or so consumers.
AMC has begun to accept payment for its digital gift cards in Dogecoin and other cryptocurrencies. CEO Adam Aron made the announcement via Twitter on Wednesday. To purchase AMC's digital gift cards with Doge, you'll need to sign up for BitPay, an Atlanta-based crypto payment processor that also provides digital gift cards for other big-name retailers including Amazon, GameStop and Home Depot.
The “before” times can be hard to remember. But the ability to shop — the opportunity to leisurely browse and encounter new brands and offerings, all in one place — was once more aligned with a department store than scrolling online during a yet-another virtual meeting. There’s more to acquiring goods, after all, than simply clicking “buy.” But where do we go from here? In many ways, the pandemic has trained shoppers to “get in, get out” — if they’re leaving their homes at all.
Dallas-based Neiman Marcus Group says it is notifying 4.6 million of its online customers who are affected by a data breach that occurred in May 2020. The compromised data includes usernames, passwords, and security questions and answers linked with online accounts. Neiman Marcus has triggered a password reset for accounts that have not changed their passwords since the breach.
Macy's shares outpaced the stock market much of Wednesday afternoon after an activist investor suggested it split its e-commerce business into a separate company the way Saks Fifth Avenue did earlier this year. Several news reports described remarks from Scott Ostfeld, partner and co-portfolio manager of Jana Strategic Investments, speaking at the 13D Monitor Active-Passive Investor Summit Wednesday, in which he reportedly said that Macy's stock price could double if it made such a move.
Spooky season has arrived, which means a few things: cooler weather, seasonal lattes and Spirit Halloween — the seasonal retailer that specializes in Halloween costumes and decorations. Every fall, around 1,400 locations pop up in the United States and Canada. The retail chain is so ubiquitous, it's even become a meme. "Today's Spirit is pretty much a bottom-feeder business that works only at the expense of other stores," Quednau writes. "If there weren't vacant storefronts, this business wouldn't exist."
Larian is just one of many toy manufacturers grappling with a massive bottleneck in the global transportation pipeline caused by the coronavirus pandemic and worsened by the blockage of the Suez Canal in March. Shipping containers that once cost $3,200 now sell for north of $20,000, Larian said. And even when containers are unloaded, there aren’t enough truckers to deliver those shipments. Power outages in China, a resin shortage and higher labor costs have also strained the supply of goods and increased prices.
Apple will be hit with an EU antitrust charge over its NFC chip technology, people familiar with the matter said, a move that puts it at risk of a possible hefty fine and could force it to open its mobile payment system to rivals. The iPhone maker has been in European Union antitrust chief Margrethe Vestager's crosshairs since June last year when she launched an investigation into Apple Pay. Preliminary concerns were Apple's NFC chip which enables tap-and-go payments on iPhones, its terms and conditions on how mobile payment service Apple Pay should be used in merchants' apps and websites, and the company's refusal to allow rivals access to the payment system.
Louisville, Kentucky-based Republic Bank is suing Green Dot, alleging breach of contract, after the prepaid card company-turned-bank backed out of a $165 million deal to buy Republic’s tax refund processing unit, Republic said in a securities filing Tuesday. Green Dot has been unable to get the Federal Reserve’s "approval of or non-objection" to the transaction, and therefore, it "will not be consummated," the company said Monday in its own securities filing.
Feedzai has released its most recent Quarterly Financial Crime Report. The report analyzes financial crime and consumer spending trends from more than 1.5 billion global transactions from April to July this year. According to the analysis, six months into the second year of a global pandemic, consumers’ shift to digital banking has only gotten stronger. The data reveals continuous move to cashless transactions, with a 146% increase in P2P payments, a 44% decrease in cash transactions, and a 109% increase in online transactions, to nearly double the number of card-present or in-person transactions.
May require account to read. For a decade after the financial crisis the world economy’s problem was a lack of spending. Worried households paid down their debts, governments imposed austerity and wary firms held back investment, especially in physical capacity, while hiring from a seemingly infinite pool of workers. Now spending has come roaring back, as governments have stimulated the economy and consumers let rip. The surge in demand is so powerful that supply is struggling to keep up.
Companies shook off worries over the Covid delta variant and hired at a faster-than-expected pace in September, according to a report Wednesday from payroll processing firm ADP. Private jobs rose by 568,000 for the month, better than the Dow Jones estimate from economists of 425,000 and ahead of the downwardly revised 340,000 reading in August. The initial August report showed growth of 374,000.
There were fears that the US would default on its national debt, with catastrophic financial implications. But Senate Majority leader Chuck Schumer said Congress had reached a deal to extend the debt ceiling until early December. Republican Senate Minority leader Mitch McConnell said: "Republican and Democratic members and staff negotiated through the night in good faith." The temporary debt compromise will need to be passed by both chambers of Congress.
Visa, the world’s leader in digital payments, announced the expansion of Visa Installments in Australia in partnership with ANZ, one of the country’s largest financial institutions, and merchant payment provider Quest. The Visa solution lets Australian shoppers access popular “Buy Now, Pay Later” (BNPL) financing via their existing ANZ credit cards, during checkout and without any extra steps. Visa’s fintech programs have been helping to enable the growth of installments globally since as early as 2017.
Mastercard and Citi today announced a new partnership to support local residents and small businesses through greater public-private sector collaboration. Through City Possible, Mastercard’s partnership and co-creation framework for cities, the two global leaders will bring their collective resources, expertise, and integrated urban development frameworks to the City Possible network.
Paysafe, a leading specialized payments platform, announced a new partnership with INTRALOT, a leading global gaming solutions supplier. INTRALOT’s sports-betting platform has integrated with Paysafe to enable the Montana government-operated lottery to provide its online sportsbook patrons with a comprehensive suite of traditional and alternative payment methods via a single API.
Nuvei Corporation, the global payment technology partner of thriving brands, announced an agreement with Limonetik, a global leader in payment and marketplace solutions. The move will enable Limonetik to enhance its marketplace payment services offering in Europe, as the company looks to embark on its international expansion strategy. Through this collaboration, Limonetik will leverage Nuvei’s European acquiring services and plans to incorporate international acquiring as part of its global expansion.
i3 Verticals, Inc., announced an acquisition that further strengthens its focus in the Company’s Healthcare vertical. The acquisition was effective on October 1. The acquired business provides comprehensive revenue cycle management and related administrative and consulting services for hospitals, including academic teaching institutions with residents, practice groups and healthcare providers primarily in the southeast. The Company will discuss this acquisition in further detail during its upcoming fourth quarter and year-end earnings call in November.
Bank of America is the first financial services firm to launch virtual reality (VR) training in nearly 4,300 financial centers nationwide. This innovative training technology will allow approximately 50,000 employees to practice a range of routine to complex tasks and simulate client interactions through a virtual environment. The VR program is the latest in the company’s long-standing investment in the success of its people and dedication to providing a full range of professional development tools.
United Airlines has teamed with digital payments firm PayPal to introduce QR Codes as inflight payment option, to facilitate contactless payments amid the ongoing Covid-19 pandemic. Starting next month, United customers on select flights can make touch-free inflight purchases while on board by just scanning a QR code - with or without Wi-Fi. The customers can simply show a flight attendant the PayPal QR Code in the PayPal app and use it to buy snacks, drinks and any other inflight purchases.
Payroc is excited to announce its latest strategic software partnership with Zuza, an innovative point-of-sale organization which features unparalleled innovation and customization in its space. Zuza has provided an exclusive, white labeled version of its point-of-sale software called “BloomPOS” to Payroc, which will focus in the salon, spa and gym verticals specifically. BloomPOS by Zuza offers many features specific to the aforementioned verticals, not least of which is online appointment scheduling, including text and email appointment reminders.
Worldline, the European leader in the payments and transactional services industry, has announced a partnership with Livescale, a pioneering force in the adoption of live shopping. Live shopping, a trend in which retailers, influencers, or celebrities promote and discuss products and services with shoppers via livestreaming video, is proving to be one of the fastest growing phenomena in ecommerce today.
Women's Network in Electronic Transactions (Wnet), the premier non-profit organization serving professional women in the payments and fintech industries, is pleased to announce the support of more than a dozen sponsors for our 2021 Leadership Summit, Make The Investment. “The Wnet Summit is a key facet to empowering women for leadership and executive positions, and the industry’s sponsorship support has been exceptional,” says Polly Van Duser, SPHR, Wnet Board Secretary and Senior Partner, Payments & FinTech - North America, at Greenings.
MIC Bankcard Program, a credit card processing program specializing in payment solutions for the Powersports industry, announced the expansion of its strategy to a more robust dealer-centric offering. MIC Bankcard will expand the reach of its payment solutions to the Powersports industry through integrated technology and industry-led experience. MIC Bankcard is a program of Pineapple Payments, now part of Fiserv.
